Hi everyone, the most nerve breaking news for property financing in 2010 had been announced. Bank Negara quote “ with immediate effect the implementation of a maximum loan-to-value (LTV) ratio of 70%, which will be applicable to the third house financing facility taken out by a borrower.”
Nevertheless, these rumours had been spreading in the market for a while. But, we were still in shock with this news. We believe, this decision will affect so many parties. The most obvious one will be property market players such as developer, property agents and banking industry as well.
Previously, developer had been offer attractive rebate and discount up to 10% to attract more buyers to own a house. With zero down payment and loan up to 90%, many buyers own a house without paying a single cent. But, now the table has turned. Are developers able to offer 30% rebates for a house to attract these “3rd house buyer”? This will take a lot of courage to anticipate it.
We do understand Bank Negara is trying to cool down the property market in Malaysia. But, I can’t help feeling sad over this decision. It shaded my dream to own a dream homes. Or in another way to see it, it will take longer time to own one. I will definitely mourning for this decision for a well.
I’m glad this decision not affecting first and second house buyer. Individual that fall under this category will still able to apply loan up to 90%. Congratulation to you guys!
However, this news comes by surprise and we yet to receive any black and white from the banks. We understand, you have so many dilemmas and questions to ask regarding this issue. But, please be patient with us.
We promise to update you the recent news once we received it.
For more details on the new ruling, please refer to Bank Negara Article “Measures in Promoting a Stable and Sustainable Property Market and Sound Financial and Debt Management of Households” dated 3rd November 2010.
Feel free to leave a comment about this new ruling by Bank Negara, I would like to hear from my viewers.